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Dubai-based crypto exchange BitOasis to suspend dirham transactions amid issues with local banks

BitOasis, the leading digital asset exchange of United Arab Emirates that allows customers to buy different cryptocurrencies including Bitcoin and Ripple is suspending dirham deposits and withdrawals from 4th June onwards.

The company had announced the decision last week in an email sent to its users, giving them 24 hours to complete any dirham transaction before the service gets suspended. In their yesterday’s blog, however, BitOasis has confirmed the final extension of dirham transactions until June 4.

After June 4, the only way people will be able to withdraw the cryptocurrencies from their BitOasis wallet will be by transferring them to external wallets. The company is currently working to provide other alternatives as well after June 4th, it said it the blog without sharing any details about the alternatives.

“At present, we are working hard on providing alternative payment options ahead of June 4th, which we hope will be satisfactory to our customers.”

It’s a very unfortunate situation for both BitOasis and its customers. The company has basically lost its only advantage over international exchanges which was deposits and especially withdrawls in local currency. We’re not sure how BitOasis can retain its customers without finding a reliable long-term solution to this problem.

The customers are also furious about BitOasis not being completely transparent to why the exchange is suspending dirham transactions. Many of them explained their frustration by responding to BitOasis’ announcement on Twitter.

Omar Kassim, the founder and former CEO of JadoPado who earlier this year announce his plans to launch a crypto exchange for the Middle East, Africa and Asia, sharing his thoughts about the decision on Twitter, said, “This is a real blow to the region’s nascent crypto space and dare I say, a relegation of the sector to the outer fringes of high risk finance.”

BitOasis is backed by KBBO Ventures, Wamda Capital, Jabbar Internet Group, Pantera Capital. They had raised a ‘significant’ amount of investment from these VCs earlier this year.

MENAbytes covers tech and digital media stories from Middle East North Africa

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